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re: UBS agrees to buy Credit Suisse for more than $2bn

Posted on 3/20/23 at 11:05 am to
Posted by deathvalleytiger10
Member since Sep 2009
7612 posts
Posted on 3/20/23 at 11:05 am to
quote:

big banks were forced to issue “contingent convertible” bonds that could be quickly transformed into more equity or just wiped out in a crisis,


quote:

Europe’s AT1 market is about €250bn


So these AT1 bonds are worse than junk bonds. Could we see that market completely collapse and create more chaos?
Posted by Big Scrub TX
Member since Dec 2013
33603 posts
Posted on 3/20/23 at 12:01 pm to
quote:


So these AT1 bonds are worse than junk bonds. Could we see that market completely collapse and create more chaos?
I think these Swiss ones were highly specific and not really to be extrapolated to the market at large.
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